Smaller deliberately call the McDonald's Corporation to consult the franchise business, and the official answer to the McDonald's franchise operating profits per McDonald's restaurant is different, McDonald's does not guarantee the profitability of each franchise. This is a long-term return on investment project, as long as the proper management, to achieve profitability is foreseeable. The bottom of the article to fill out the KFC franchise registration form
Of course, the official response is not surprising, after all, the franchise operation needs to take into account a lot of factors, such as: inputs, the local market and consumption levels, the degree of competition from similar brand franchises and the franchisee's personal management and operation level and so on.
To the average store, KFC, McDonald's such a store daily turnover of about 20,000 yuan, a month turnover of 600,000 yuan, a year turnover is 7.2 million yuan. McDonald's is characterized by the fact that in addition to the franchise fee paid by the franchisee to the headquarters, the franchisee also needs to pay a franchise fee of about 6% of the total turnover, as well as advertising costs of about 5% of the turnover.
Franchisees need to pay $800,000 a year to headquarters for this fee alone. In addition, the franchisee is responsible for the monthly salaries of the restaurant staff, the rent for the restaurant, as well as the purchase of products and raw materials from the headquarters, and even the purchase of equipment. This works out to an estimated 5 percent return on investment that the franchisee gets each year.
Generally franchisees can make a profit, with large companies giving investors a reasonable margin, and the benefits of joining a well-known brand are steady income and low risk. But it's hard to make a lot of money, and these companies tend to look for steady growth over the long term.
Big companies will control the profits of their franchisees. For example, by controlling the supply of raw materials, products, etc. the investor gets a profit that is within reason rather than a windfall. Risk and profit are usually proportional, high profit means high risk, low profit means low risk. KFC Franchise Registration Form